Tax Return Information To Be Opened
The state House of Representatives is poised to vote on a bill that could lead to the disclosure of highly sensitive tax information to business competitors, opposing parties in negotiations and advocacy groups with conflicting positions. HB-5534 would establish a new 17-member commission to review the state’s tax landscape.
Generally, it is a good idea to periodically review data and information to see how Connecticut’s tax structure is working and whether or not changes are necessary. Unfortunately, this new tax commission will be composed of people who represent numerous interest groups and who may lack expertise in taxes.
More troubling is that the bill allows the commission to receive tax returns or return information from the commissioner of the Department of Revenue Services. This means members of the commission will be able to review sensitive, confidential tax information.
Depending on the makeup of the commission, business competitors might have the opportunity to review their chief rival’s tax returns or supporting documents.
Parties in negotiations might be able to review pertinent tax information from the opposing side. And special interest advocacy groups would be able to review sensitive tax documents and use the information for political purposes.
The potential for abuse and misuse is so great that it outweighs any possible benefits that might come from this new commission.
From a business and competitive perspective, it is extremely important that sensitive tax information not wind up in the wrong hands. The consequences could be dire for businesses and Connecticut’s economy.
For more information, contact CBIA’s Bonnie Stewart at 860.244.1925 or email@example.com.
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